Bank of America raises 2026 Brent forecast to $77.50/BBL on Strait of Hormuz impasse

March 16 (Reuters) - Bank of America on Monday raised its 2026 Brent crude forecast to $77.50 a barrel from $61 earlier, citing the ongoing impasse at the Strait of Hormuz.

The bank's commodity research team said the new outlook reflects two equally likely paths: a quick resolution that restores flows by April and puts Brent near $70, or a longer disruption spilling into the second quarter that lifts prices toward $85.

A prolonged conflict into the second half could drive Brent to an "eye‑watering" $130, though analysts called that unlikely. Once the war ends, BofA expects oil markets to swing back to surplus, pushing Brent to $65 in 2027.